Unlock cash from your portfolio — without selling a single share.
Securities lending (a margin loan) lets you borrow against a portfolio of shares, ETFs or managed funds, using the portfolio itself as security. You keep your holdings, stay invested, and free up liquidity for another opportunity. But it's a geared strategy — borrowing to invest magnifies losses as well as gains, and a falling market can trigger a margin call. This page shows how much you can borrow, how the buffer works, and exactly where the risk sits — before you decide anything.
How much you can borrow depends on what you hold.
Every lender publishes an "accepted securities list" with a maximum lending ratio (LVR) for each holding. Higher-quality, more liquid, more diversified assets carry a higher ratio; concentrated or speculative holdings carry a lower one — or aren't lendable at all. The ladder below is illustrative only.
Ratios are indicative and illustrative only. Margin lenders generally lend between about 30% and 75% of each accepted security's value, and each lender sets — and can change, at its discretion and without notice — its own list and ratios. Broad ASX index ETFs can sit around 75% (some lenders up to ~80% on core index ETFs); individual and speculative stocks are lower or excluded. Diversification matters: portfolio-LVR treatment typically needs five or more approved holdings, and an overly concentrated portfolio can have its lending value cut.
Lenders add a small buffer above your maximum (base) LVR to absorb everyday market moves. Cross the base LVR and you're "in buffer"; cross the margin-call line and you get a call. Here's the same $120,000 loan against a $200,000 portfolio, before and after a market fall — figures illustrative.
The loan doesn't shrink when the market does — so a fall in portfolio value pushes your LVR up. The buffer (commonly around 5%) buys a little room; once current LVR reaches the margin-call level you generally have about 24 hours to deposit cash, add securities, or sell down. If you don't, the lender sells part of your portfolio to restore the ratio — potentially at the worst possible time. Borrowing more conservatively (say 50% rather than the maximum) is the simplest defence. Illustrative only; buffers, base LVRs and call windows are set by each lender.
Three features that set a margin loan apart.
You keep your holdings
Your shares, ETFs and funds stay in your name and keep earning dividends and distributions — the lender takes a security interest, not ownership. You free up cash without triggering a sale (and any capital-gains event that a sale might bring).
Interest-only, drawn as you need
Facilities are typically interest-only and revolving — draw what you need up to your limit, pay interest only on the balance drawn. Rates are variable and move with the cash rate; some lenders offer a fixed-rate option for part of the balance.
Monitored daily against LVR
Unlike a home loan, a margin loan is marked to market every day. Your LVR moves with prices, so the lender watches it continuously — which is exactly why the buffer and margin-call mechanics matter so much.
Where rates and the rules sit right now.
Margin-loan pricing is variable and tracks the cash rate; the mechanics are set by regulation and each lender's list. A quick, honest snapshot — figures indicative and as-of the dates shown.
Sources: ASIC MoneySmart, “Borrowing to invest” and margin-call glossary; CommSec margin-lending disclosures (LVR & buffer); CommSec and NAB published variable margin-loan rates (effective mid-2026); Reserve Bank of Australia cash-rate target (July 2026). Rates are variable, indicative only, move with the cash rate, and are not comparison rates. ASIC regulates margin lending and providers must hold an AFS licence.
What investors use a margin facility for.
An investment-purpose facility for experienced investors.
Securities lending is a geared investment strategy, not a consumer loan. It's arranged for business or investment purposes and, in practice, for wholesale or sophisticated investors — which brings flexibility, and fewer of the protections that apply to consumer credit. We check that it genuinely fits before anything proceeds.
Investment purpose, ASIC-regulated
Margin lending in Australia is regulated by ASIC and providers must hold an Australian Financial Services (AFS) licence. A margin loan taken for investment purposes sits outside the National Credit Code that protects consumer loans — so it's assessed on suitability, not consumer-credit responsible-lending rules.
ASIC — Margin lending (AFS licensing). General information, not legal, tax or financial advice.
Wholesale / sophisticated investor
These facilities are generally offered to wholesale or “sophisticated” investors — broadly, those certified by a qualified accountant as holding ~$2.5m in net assets or earning ~$250k a year (each of the last two financial years), or otherwise meeting the wholesale-client tests.
Corporations Act 2001 (Cth) s708(8) / s761G; accountant’s certificate valid two years. General information, not personal advice.
The honest trade-off
A margin loan buys you liquidity and the chance to stay invested — and you take on real, ongoing risk for it. Because you're borrowing to invest, a market fall hits you twice: your portfolio drops and your loan-to-value ratio climbs toward a margin call. You still owe the full loan and interest even if your investments are worth less than you borrowed, and a forced sale can lock in losses at the worst moment.
Used deliberately — conservative gearing, a diversified portfolio, and cash set aside to meet a call — it can be a sensible tool for an experienced investor. Used loosely, it's how people lose more than they put in. Our job is to be straight about which one you're looking at, and often to say when staying ungeared, or a different structure, is the better answer. We arrange the facility through Esteb Capital.
Securities/margin lending referred to on this page is an investment-purpose / wholesale facility arranged through Esteb Capital, and is generally not regulated under the National Credit Code. LVRs, buffers, rates and figures are indicative and lender-specific — not an offer of credit, a quote, a comparison rate, or a guarantee of approval. This is general information, not personal financial, investment, tax or legal advice; consider your own circumstances and seek independent advice before gearing.
Securities lending, answered straight.
What is securities lending (a margin loan)?
It's a loan you take out to invest, using a portfolio of shares, ETFs or managed funds as security. You keep your holdings and free up cash, while the lender takes a security interest over the portfolio. Because you're borrowing to invest, it magnifies both gains and losses — so it suits experienced, investment-purpose borrowers. We arrange it through Esteb Capital.
How much can I borrow against my portfolio?
It depends on what you hold. Each lender publishes an accepted-securities list with a maximum lending ratio (LVR) per holding — generally between about 30% and 75% of value. Broad index and blue-chip ETFs sit at the top (around 75%, some to ~80%), individual blue-chip shares a little lower, mid-caps lower again, and speculative or non-approved securities are often not lendable at all. LVRs are indicative, lender-specific, and can change without notice.
What is a margin call, and what happens if I get one?
If your portfolio falls in value, your loan-to-value ratio rises. Cross the agreed level (base LVR plus a buffer, commonly around 5%) and you get a margin call — you generally have about 24 hours to lower the LVR by depositing cash, adding securities, or selling part of the portfolio. If you can't, the lender sells some of your investments to bring the ratio back — potentially at a bad time. Conservative gearing and a cash reserve are the usual defences.
What does a margin loan cost?
Interest is charged on the drawn balance and is variable, moving with the RBA cash rate. As an indication, published variable margin-loan rates were around 8.9–9.0% p.a. in mid-2026. These are indicative only, not comparison rates, and every facility is priced on its own terms — confirmed in writing.
Is it regulated, and who is it for?
Margin lending is regulated by ASIC and providers must hold an AFS licence. A margin loan for investment purposes sits outside the National Credit Code consumer protections and is generally offered to wholesale or sophisticated investors. It's a geared strategy, so it has to genuinely suit your situation — we check that first.
What are the main risks?
Borrowing to invest amplifies your losses as well as your gains; you can lose more than your original stake. A falling market can trigger a margin call and a forced sale, interest rates can rise, and a concentrated or speculative portfolio can have its lending value cut. This page is general information, not financial or investment advice — seek independent advice before gearing.
Thinking about borrowing against your portfolio?
Tell us what you hold, what you're trying to do, and the timeline. We'll be honest about whether a margin facility fits — the LVR you'd realistically get, the risks, and the alternatives — before anything proceeds.
Discuss a facility →